PLN postpones LNG supply tender

State-owned electricity company PT PLN has decided to postpone tender for the supply of 230 mmscfd of gas for its planned 32 gas-fired power plants, Bisnis Indonesia reported on Wednesday.

The paper quoted Head of Gas and Oil Fuel Division at PLN Chairani Rachmatullah as saying that the schedule for submission of bid documents by tender participants has been pushed back to October of this year from the initial schedule of April.

Consequently, announcement of the winning bidder/s will also be postponed, but Chairani said the supply contract agreement has been targeted to be completed this year.

Chairani said that the reschedule comes following suggestions from tender participants, which have passed the pre-qualification stage, as they require more time to complete the bid documents as the project involves the supply of gas to 32 locations, and the fact that PLN has yet to complete the entire land acquisition for the planned power plant projects and the necessary gas infrastructure facilities.

Chairani said that the gas-fired power plant projects are expected to be completed in two years, hoping that the gas infrastructure facilities can be completed in 2018, by which time the gas supply will start.

There are 11 tender participants, comprising of six consortia and five companies, which have passed the pre-qualification tender. The six consortia include consortium of Socar Petroleum SA, PT Humpuss Transportasi Kimia, PT PP Tbk, and PT Toba Sejahtera; consortium of PT Bukaka Teknik Utama Tbk, Tokyo Gas Ltd, and Mitsui Co Ltd; consortium of PTPGN and International Power Ltd; consortium of Itochu Corp and PT Energesindo Heksa Karya; consortium of Shell Gas Power Development BV, and PT Energi Dian Kemala; and consortium of Mitsubishi Corp, Brunei National Petroleum company, and Diamond Gas International Pte Ltd.

Meanwhile, the five individual firms include PT Pertamina, Osaka Gas Ltd, PT Medco Energi Internasional Tbk, Gas Natural Fenosa SDG S.A., and Marubeni Corporation. (*)